INSTANT VIEW: Kraft plays long game in Cadbury pursuit

"I guess Cadbury's shareholders will be waiting for a counter bid to try and push the price up now."

UNNAMED ANALYST, REDBURN PARTNERS

"I think this bid is far too low and will almost certainly fail. There's no chance that this bid will stand a chance because around 7.10 pounds is far too low a multiple and I see somewhere around 8 pounds perhaps being more acceptable."

ERIN SWANSON, ANALYST, MORNINGSTAR

"Cadbury stock price has trickled down ... since no other bidders have emerged.

"In terms of Kraft's motivation at this point, they are essentially bidding against themselves, given that nobody else has come forward.

"The cash portion might not be enough to attract Cadbury shareholders. If you are a shareholder in a high growth, high margin confectionery company, you don't necessarily want to hold shares of a mature packaged food company."

MATT ARNOLD, ANALYST, EDWARD JONES

"There's a good chance they (Kraft) will have to increase this a little bit.

"I still think the cash side is likely where they have the opportunity to make it more attractive to Cadbury shareholders."

STEPHEN POPE, CHIEF MARKET STRATEGIST, CANTOR FITZGERALD

"They (Kraft) are looking to try to play a slightly long game, i.e. being cool and not necessarily rushing in and fearing that they would overpaid.

"The worry is though that Cadbury would have run in to the Christmas season, which is usually very good for them. If they have their next trading statement and things are looking positive, then you will have a situation where the Cadbury price might have moved away again from where Kraft are trying to pitch this."

CLIVE BLACK, HEAD OF RESEARCH AT SHORE CAPITAL

"It's no surprise Kraft came back with a formal bid. There is a view that Kraft should have played a longer ball game. No white knight was found and there were no counter bidders so there was no reason for Kraft to increase their offer.

"Undoubtedly Cadbury will reject the bid but it will give shareholders something to think about. The process will be drawn out and they will come back with a higher offer, although not as high as some are speculating about."